In this article, we will take a look at the 12 Best Hydrogen and Fuel Cell Stocks to Buy for 2025.
Hydrogen produced from renewable electricity could transform heavy industry and transportation, offering a clean, sustainable alternative to fossil fuels. Seen as a key to decarbonizing heavy industry, hydrogen provides a greener way to generate heat and power vehicles. While global investments in renewable energy have surged, electricity alone can’t meet the fuel needs of many industrial operations. Hydrogen steps in as a versatile option, functioning much like traditional oil and gas, allowing vehicles to run on clean fuel instead of petrol or diesel. The global hydrogen market, worth $148 billion in 2023, is expected to grow to $259 billion by 2033 at a steady CAGR of 5.75%. Moreover, BloombergNEF predicts hydrogen supply will expand thirtyfold, reaching 16.4 million metric tons annually by 2030.
U.S. regulations
Hydrogen holds immense potential, but its adoption still faces significant challenges. A 2024 report by IDTechEx estimated that only 4% of zero-emission vehicles (ZEVs) will run on hydrogen in the next two decades. However, it projected that around 20% of ZEV trucks could be hydrogen-powered by 2044. The report emphasized that expanding blue, gray, and green hydrogen markets—combined with supportive government policies—could accelerate innovation in fuel cell electric vehicles (FCEVs).
In the global hydrogen race, the United States is positioned to be a leading player, thanks to its mature projects and favorable tax policies that incentivize hydrogen development. However, the sector’s future faces uncertainty with the incoming administration of President-elect Donald Trump. Reduced federal support for green hydrogen initiatives could make it difficult for the industry to compete with cheaper fossil-fuel alternatives like natural gas, putting billions of dollars in planned projects at risk. “Lots of people in industry continue to see the long-term value of producing hydrogen to the U.S. economy and for export around the world,” said Frank Wolak, president and CEO of the Fuel Cell and Hydrogen Energy Association. “But there’s definitely a trepidation about what this industry looks like going into 2025.”
Overall, hydrogen remains in its early stages. The International Energy Agency’s (IEA) Global Hydrogen Review 2024 highlighted sluggish policy implementation in critical sectors like heavy industry, refineries, and long-haul transport. In 2023, global hydrogen demand reached just over 97 million tons, with a modest rise to 100 million tons expected in 2024—largely driven by economic trends rather than effective policy measures. As the IEA stated, “Hydrogen demand remains concentrated in refining and industrial applications, where it has been used for decades. Its adoption in new applications crucial for the clean energy transition—such as heavy industry, long-distance transport, and energy storage—accounts for less than 1% of global demand, despite a 40% growth compared to 2022.”
China leading the pack
China dominated nearly 60% of the global 25-gigawatt electrolyzer manufacturing capacity in 2023, according to a report from the IEA. The Paris-based organization projects that China will remain a leader, producing over half of the world’s electrolyzers by 2035. By 2050, the IEA estimates global installed electrolyzer capacity could reach 320 GW, assuming countries meet their Paris Agreement commitments. The report highlights that EU initiatives promoting low-carbon aviation fuel are a key driver of electrolyzer demand. It predicts that transportation will account for two-thirds of global demand by 2050, with the remainder distributed across industrial, refining, and power sectors. By midcentury, China is expected to utilize 25% of installed electrolyzers, followed by the U.S. at 14%.
With that said, we will now look at our list of the Best Hydrogen and Fuel Cell Stocks to Buy.
Photo by Possessed Photography on Unsplash
Our Methodology
To compile our list of the Best Hydrogen and Fuel Cell Stocks to Buy, we started with companies that have a significant presence in the hydrogen and fuel cell industry. We sifted through ETFs and lists on the internet. We then refined the selection by focusing on the number of hedge fund holders as of Q3 2024, based on data from Insider Monkey’s database, which tracks the activity of 900 hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12. FuelCell Energy (NASDAQ:FCEL)
Number of Hedge Fund Holders: 9
FuelCell Energy (NASDAQ:FCEL) specializes in developing and commercializing fuel cell technology, harnessing the chemical energy of hydrogen and other fuels to produce electricity. The company is recognized for its innovative, high-efficiency fuel cell systems that offer reliable, low-carbon power solutions.
In October, FuelCell Energy (NASDAQ:FCEL) partnered with Korea Hydro & Nuclear Power (KHNP) to explore hydrogen energy initiatives. This collaboration focuses on deploying advanced energy solutions, including FuelCell’s solid oxide electrolysis hydrogen platform, integrated with KHNP’s nuclear power plants.
TD Cowen revised its price target for FuelCell Energy (NASDAQ:FCEL) on December 20, raising it from $2 to $12 while maintaining a Hold rating. The firm highlighted a successful implementation at an Idaho nuclear facility as a key milestone, enhancing the company’s credibility and potential to secure future financing. Advancements in FuelCell’s molten carbonate fuel cell technology were also noted as significant progress.
11. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 10
Plug Power Inc. (NASDAQ:PLUG) is a leading player in renewable hydrogen production and fuel cell technology, offering a comprehensive range of products, including electrolyzers, hydrogen fuel cells, and hydrogen infrastructure solutions. The company has forged key partnerships, such as its collaboration with Nikola Corporation, to advance its position in the hydrogen economy.
On November 12, Plug Power Inc. (NASDAQ:PLUG) reported its Q3 2024 results, highlighting a 285% quarter-over-quarter increase in electrolyzer sales. This surge was driven by revenue from a large-scale order and sales of 5MW systems. The company also shared updates on its hydrogen production network, including progress on its joint venture hydrogen plant with Olin Corporation in Louisiana, which is set to ramp up liquid production capacity in Q1 2025.
KeyBanc recently reaffirmed its Sector Weight rating for Plug Power Inc. (NASDAQ:PLUG) on November 18, citing insights from the company’s annual symposium. While Plug Power stressed its focus on cost management and revenue growth during the event, KeyBanc noted that the company’s near-term performance will depend on several critical factors, including the realization of a DOE loan, clarity on 45V tax credits, and policy developments under the new administration. The firm also emphasized the importance of improving liquidity and reducing cash burn as Plug Power prepares for an anticipated increase in revenue cadence.
10. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 25
Bloom Energy Corporation (NYSE:BE) specializes in developing, manufacturing, and installing solid-oxide fuel cell systems for on-site power generation worldwide. Its flagship product, the Bloom Energy Server, leverages solid oxide technology to convert fuels such as natural gas and hydrogen into electricity without combustion, offering an efficient and low-emission energy solution.
On December 12, Baird reaffirmed its Outperform rating on Bloom Energy Corporation (NYSE:BE) and significantly raised the price target to $32 from $15. The update came after meetings with CFO Dan Berenbaum and VP of Investor Relations Michael Tierney, which left analysts optimistic about the company’s growth trajectory. Recent utility agreements, including a high-profile deal with AEP, have bolstered confidence in Bloom Energy’s ability to secure large-scale contracts, showcasing strong commercial momentum.
In its Q3 earnings report, Bloom Energy Corporation (NYSE:BE) posted revenues of $330 million and an EBITDA of $21 million. While results fell slightly below expectations, the company upheld its full-year revenue and gross margin forecasts. Highlights included securing three major orders, notably an 80-megawatt project in South Korea, and expanding manufacturing operations in Fremont to address growing demand.
9. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders: 35
Cummins Inc. (NYSE:CMI) is a U.S.-based company specializing in the design, manufacturing, and servicing of diesel and natural gas engines, electric and hybrid powertrains, and related components. Its diverse portfolio also includes advanced electrified power systems featuring battery technology, fuel cells, and hydrogen production solutions.
JPMorgan recently upgraded Cummins Inc. (NYSE:CMI) from Underweight to Neutral, raising the price target to $420 from $355. This shift reflects a positive outlook on the company’s sales growth potential, particularly in the Distribution and Power Systems segments. Analysts project earnings per share of $22.96 for December 2025, representing a 12% year-over-year increase, with EPS forecasted to grow to $27 in December 2026, an 18% rise year-over-year.
Cummins Inc. (NYSE:CMI) showcased robust financial performance in Q3 2024, reporting steady sales of $8.5 billion and an EBITDA increase to $1.4 billion, with margins improving from 14.6% to 16.4%. The company also achieved key milestones, including the launch of full production for its X15N natural gas engine and the opening of an electrolyzer manufacturing plant in Spain to support hydrogen initiatives.
8. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 36
BP p.l.c. (NYSE:BP), headquartered in London, U.K., is a global energy leader established in 1908. The company operates across diverse energy sectors, including natural gas production, wind power, hydrogen, carbon capture, and oil production. BP is also active in EV charging infrastructure, retail fuel distribution, and lubricant manufacturing.
BP p.l.c. (NYSE:BP) recently announced its final investment decision for the “Lingen Green Hydrogen” project, supported by funding from the Important Projects of Common European Interest program. The 100 MW plant is expected to produce up to 11,000 tons of green hydrogen annually. This initiative aligns with the company’s broader plans to expand hydrogen and carbon capture investments, with five to ten similar projects planned globally by the end of the decade. Construction is set to commence in 2025, with commissioning anticipated by 2027.
In Q3 2024, BP p.l.c. (NYSE:BP) reported robust operational performance, with upstream production increasing 3% year-to-date and liquid production rising by 5%. Upstream plant reliability exceeded 95%, while refining availability surpassed 96%. The company also added 23 kbd of biogas supply, with more facilities slated for launch in Q4. These efforts contributed to an underlying profit of $2.3 billion for the quarter.
7. Chart Industries, Inc. (NYSE:GTLS)
Number of Hedge Fund Holders: 40
Chart Industries, Inc. (NYSE:GTLS) specializes in designing, engineering, and manufacturing equipment and technologies for handling gases and liquids, primarily focusing on clean energy solutions. Its offerings support industries such as Liquefied Natural Gas (LNG) storage and transport, hydrogen production, and environmental sustainability.
Within its cryo tank solutions and heat transfer systems segments, Chart Industries, Inc. (NYSE:GTLS) provides storage and distribution services while supplying equipment for the separation, liquefaction, and purification of hydrocarbons and gases. Earlier this year, the company launched a jumbo cryogenic tank manufacturing facility in Theodore, Alabama. This new facility is expected to enhance capacity, reduce freight costs, improve customer lead times, and support business growth.
Chart Industries, Inc. (NYSE:GTLS) delivered strong financial results in Q3 2024, reporting a 22.4% year-over-year sales increase to $1.06 billion and generating $200.7 million in net cash from operating activities. The company also saw a 5.4% growth in orders, totaling $1.17 billion, driven by demand in the energy and hydrogen sectors. For 2025, Chart Industries, Inc. (NYSE:GTLS) projects sales of $4.65 billion to $4.85 billion and adjusted EBITDA in the range of $1.175 billion to $1.225 billion.
Following these impressive results, Citi reaffirmed its Buy rating on GTLS with a price target of $190. Citi highlighted the company’s strong margins and free cash flow performance and noted management’s expectation of a book-to-bill ratio exceeding 1x in Q4. The firm emphasized that sustained FCF strength, adjusted for seasonality, could drive further stock value appreciation.
Aristotle Small Cap Equity Strategy stated the following regarding Chart Industries, Inc. (NYSE:GTLS) in its Q2 2024 investor letter:
“Chart Industries, Inc. (NYSE:GTLS), an industrial equipment manufacturer that provides cryogenic equipment for storage, distribution, and other processes within the industrial gas and LNG, hydrogen, helium, carbon capture and water treatment industries was added to the portfolio. Strong forward demand for LNG and accelerating hydrogen opportunities coupled with company-specific improvement initiatives should benefit the company moving forward.”
6. Air Products and Chemicals, Inc. (NYSE:APD)
Number of Hedge Fund Holders: 45
Air Products and Chemicals, Inc. (NYSE:APD) is a global leader in industrial gases and liquefied natural gas (LNG) processing technology and equipment. It ranks among the largest suppliers of merchant hydrogen and is a pioneer in hydrogen fuel infrastructure, operating over 100 hydrogen plants with a combined production capacity of 7 million kilograms daily.
The company is committed to addressing global energy and environmental challenges through gasification, carbon capture, and clean hydrogen initiatives. Among its notable projects is a $4.5 billion investment in Louisiana to construct the world’s largest blue hydrogen facility. Scheduled for completion in 2026, the project aims to capture and permanently store over 5 million metric tons of carbon dioxide annually.
In its Q4 2024 results, Air Products and Chemicals, Inc. (NYSE:APD) reported a 13% year-over-year increase in adjusted earnings per share, aligning with its guidance. For fiscal year 2025, the company forecasts EPS growth of 6% to 9%, even after divesting its LNG business to Honeywell. Following these results, Mizuho reaffirmed an Outperform rating and raised its price target to $385 from $360. Similarly, BMO Capital maintained an Outperform rating, increasing its target to $350 from $323, citing the company’s strong financial performance.
ClearBridge Large Cap Value Strategy stated the following regarding Air Products and Chemicals, Inc. (NYSE:APD) in its Q3 2024 investor letter:
“Air Products and Chemicals, Inc. (NYSE:APD) has also made strong contributions recently, delivering operationally and announcing a major offtake agreement for its NEOM green hydrogen project in June. Strong fundamentals for APD are shining through a soft Chinese industrial economy, and it continues to shore up the strength of its core industrial gases franchise, committing to not invest additional capital on big projects until they soak up existing capacity, putting a management structure in place to allow for more accountability and announcing board-initiated succession planning that will help built investor confidence for the future. The company is also tightening up its operational focus by divesting non-core assets and streamlining operations.”
5. DuPont de Nemours Inc. (NYSE:DD)
Number of Hedge Fund Holders: 47
DuPont de Nemours, Inc. (NYSE:DD), headquartered in Delaware, is a technology-driven materials and solutions provider operating across three segments: Electronics & Industrial, Water & Protection, and Corporate & Other. Through its Water & Protection segment, the company is advancing the global shift to sustainable energy by engaging in water purification and hydrogen production. The company also manufactures PEM fuel cells, which are crucial for separating hydrogen and oxygen in electrolyzers.
In Q3 2024, DuPont de Nemours, Inc. (NYSE:DD) reported strong financial performance, with its Electronics & Industrial segment achieving an Operating EBITDA of $467 million, a 22% year-over-year increase. This growth was fueled by higher production rates, volume increases, restructuring savings, and contributions from recent acquisitions. The company also announced a quarterly dividend of $0.38 per share, paid on December 16 to stockholders of record as of November 29, amounting to an annualized dividend of $1.52 per share.
As of Q3 2023, 47 hedge funds monitored by Insider Monkey held stakes in DuPont de Nemours, Inc. (NYSE:DD).
4. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 48
Shell plc (NYSE:SHEL) is a global energy and petrochemical company engaged in the exploration, production, and sale of crude oil, natural gas, natural gas liquids, low-carbon fuels, lubricants, bitumen, and petrochemicals. The company also invests in renewable electricity generation, hydrogen sales, and electric vehicle charging infrastructure.
The company recently announced a final investment decision for Bonga North, a $5 billion deep-water project off the coast of Nigeria. This development underscores Shell’s continued investment in traditional hydrocarbons while contributing to the growth of Nigeria’s oil and gas industry. Production from the project is expected by the end of the decade.
In Q3 2024, Shell plc (NYSE:SHEL) reported adjusted earnings of $6 billion, exceeding analyst expectations by 13.2%. Free cash flow rose significantly to $10.83 billion, up from $7.5 billion in the same period the previous year. The company also announced plans to repurchase $3.5 billion in shares by year-end while maintaining its dividend at $0.34 per share.
In October, Piper Sandler reaffirmed an Overweight rating on Shell plc (NYSE:SHEL), raising its price target to $82. The firm praised Shell’s strong operational performance, highlighting LNG liquefaction volumes of 7.5 million tonnes (MT), which surpassed the 7.1 MT estimate, and steady exploration and production output despite expectations of a decline.
According to Insider Monkey’s data, 48 hedge funds held long positions in Shell plc (NYSE:SHEL), slightly down from 49 in the prior quarter.
3. Linde plc (NASDAQ:LIN)
Number of Hedge Fund Holders: 63
Linde plc (NASDAQ:LIN) is a leading global industrial gas company, supplying essential gases such as oxygen, nitrogen, helium, and hydrogen. The company also specializes in designing and constructing process plants for industries including healthcare, chemicals, manufacturing, and electronics.
On December 18, Citi revised its price target for Linde plc (NASDAQ:LIN) to $480 from $490, maintaining a Neutral rating on the stock. This adjustment aligns with Citi’s updated 2025 chemicals outlook, which projects a “broadly neutral view” on commodity chemicals due to supply overhangs and forecasts that the first half of 2025 earnings will mirror the second half of 2024.
In Q3 2024, Linde plc (NASDAQ:LIN) reported a 2% year-over-year increase in sales, reaching $8.4 billion, fueled by robust project activity and growing demand for liquefied natural gas infrastructure. For Q4 2024, the company anticipates earnings per share in the range of $3.86 to $3.96, with a full-year EPS forecast of $15.40 to $15.50, reflecting 9-10% growth. Additionally, Linde plc (NASDAQ:LIN) secured a significant $2 billion contract with Dow Chemical, contributing to a record project backlog of $10 billion. This collaboration supports Dow’s net-zero carbon emissions initiative in Alberta by transitioning from natural gas to low-carbon blue hydrogen.
According to Insider Monkey’s Q3 database, 63 hedge funds held long positions in Linde plc (NASDAQ:LIN), with an aggregate value of $3.6 billion.
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 63
Chevron Corporation (NYSE:CVX) is a prominent player in hydrogen production, generating approximately 1 million tonnes annually, primarily for refining operations. The company aims to expand its hydrogen business by utilizing its existing refineries, distribution networks, sales channels, and established brand to supply hydrogen to a broader customer base.
Earlier in May, Chevron Corporation (NYSE:CVX) announced plans to construct and operate a solar-powered hydrogen production facility in California. This 5 MW project will use solar energy to split non-potable water into hydrogen fuel. Scheduled to begin production in 2025, the facility represents Chevron’s first direct investment in a hydrogen initiative, with an expected output of 2.2 tons of hydrogen daily.
Chevron Corporation (NYSE:CVX) reported robust Q3 2024 financial results, with revenues reaching $50.67 billion, exceeding analysts’ expectations by $1.63 billion. Operating cash flow surged to $9.7 billion, compared to $6.3 billion in the prior quarter. The company also returned $7.7 billion to shareholders through dividends and share buybacks.
On December 9, Bank of America named Chevron Corporation (NYSE:CVX) a top pick for 2025, maintaining a Buy rating and raising its price target from $168 to $180. BofA highlighted that projects in the Gulf of Mexico, Tengizchevroil, and Chevron Phillips Chemical (CP Chem) are expected to contribute $5.5 billion in FCF over the next 2-3 years. These contributions, however, remain “underappreciated by investors,” particularly as Chevron Corporation (NYSE:CVX) navigates arbitration proceedings with Hess, with a decision anticipated in Q2 2025.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
Exxon Mobil Corporation (NYSE:XOM) operates across the production, trading, transportation, and sale of crude oil, natural gas, petroleum products, petrochemicals, and specialized products. The company is also focusing on lower-emission opportunities, including carbon capture and storage, hydrogen, and the development of sustainable fuels.
On December 17, ExxonMobil announced it had selected Australia-based Worley to provide engineering, procurement, and construction services for a proposed hydrogen and ammonia production facility in Baytown, Texas. Situated near ExxonMobil’s Gulf Coast chemicals and refining complex, the plant is expected to produce 1 billion cubic feet of blue hydrogen daily using natural gas with carbon capture and storage technology, along with 1 million tons of ammonia annually. ExxonMobil projects this facility will be the largest of its kind globally.
On December 16, Bernstein SocGen Group reaffirmed its Outperform rating on ExxonMobil with a price target of $138. This endorsement followed a comprehensive review of ExxonMobil’s updated corporate plan and an upstream spotlight session, which highlighted the company’s strategic focus on low-carbon solutions as part of its transition to a post-oil future.
As of Q3 2024, 86 hedge funds included Exxon Mobil Corporation in their portfolios, down from 92 in the previous quarter, according to Insider Monkey. The combined value of these stakes was nearly $7 billion.
While we acknowledge the potential of XOM, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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